It was an honor to be asked to be your breakfast keynote speaker. The additional two educational events you asked me to present were well attended and the governance topic session was standing room only!

Stephanie Clark the BIABC Executive Director, Maureen Healey and Corry Hostetter did an exceptional job in organizing and hosting their annual conference. Hope to see you all next year.

Not having a quorm shows apathy and/or past years AGM have had little value.

There is a special caution at the bottom of this post, suggest you have a look!
Why Your Members Aren’t Voting…

Posted by Bob Claus

In a recent survey, members of a large medical organization were asked to identify the primary reason why they chose NOT to participate in their organization’s election. The top reason given was “Did not know the candidates,” significantly ahead of “Missed the deadline” or “Unaware election occurred.”

If your membership isn’t familiar with the candidates or the issues, they won’t vote. It is in the organization’s best interest to decrease voter apathy by keeping members informed about the candidates and decisions that will help guide the organization in the future.

We recommend associations, cooperatives, unions and other member organizations to inform their membership about candidates in the following ways:

• Include biographies in the online voting ballot

• Create biography packets or booklets, include photos

• Publish interviews of the candidates in organization’s newsletter

• Create a large enough “voting window” to allow members to learn about the candidates

• Produce online videos about candidates and post them on the organization’s website

Now we all realize that this situation was occurring for a number of difficult unhealthy reasons and something drastic had to be done . . . .

The first step and one so simple was to create a timed agenda. It was really quite easy. The meeting ended at 1:30 rather than 4:30 so they reduced their meeting time by 3 hours. This is a dramatic example however if your board meeting took less time, was better organized and more productive wouldn’t it be worth trying a timed agenda? The timed agenda is only the first step and if the time is not adhered to frustration will occur. Someone (usually the Chair) must enforce the time limits and others need to be respectful of the time.

So what happens when you absolutely must go over the allotted time or when do you fit an in camera meeting into the schedule. What about the attendee who go on and on giving no consideration for the time. It’s very tricky to cut off debate and you must give everyone an opportunity to speak to an item.

There are answers to all these so give me a quick call at 1 888 531 5796 No need in reinventing the wheel or continuing with overly long meetings. There is an example below of a timed agenda you will have to modify for your needs however it’s a good starting point.

Sample Timed Agenda

This is a really simple timed agenda, adjust it to your requirements, follow it and your meetings will be shorter, that’s a guarantee!

All of the items are then treated as one item, one motion, one second, and one vote!

Items commonly found on consent agendas include

• Minutes of the previous meeting
• Confirmation of a decision that has previously discussed
• Chief Staff Officer/Executive Directors report
• Committee reports
• Informational materials
• Updated organizational documents

Items that require full board discussion and/or decision making do not go into these consent agenda items. All Board members have the opportunity in the Board meeting to remove any items from the consent agenda items should they require further explanation.

A quick tip in order to test whether an item should or should not be included in the consent agenda is to ask the questions:

• Is this item self-explanatory and uncontroversial?
• Does the item warrant board discussion?
• Is this item for ‘information only’?
• Is it an item where further discussion is required?

There are many time times when I receive comments such as ‘if only the Board had made a decision, we wouldn’t have this problem’   In fact; some groups inappropriately take advantage of the Board not being able to make a decision.

The potential damage in not being able to make a decision includes staff, members and/or other stakeholders becoming frustrated by not receiving clear and reliable direction. A first time Board member may believe that an indecisive Board is the norm….. An experienced Board member may become frustrated and take their talents to another Board. Yes, it can be a problem and effecting the organization and a lot of individuals.

So how does one intervene? There are some good examples below:

• Encourage the Board to balance the need for caution with the need to be decisive
• Encourage the Board to take calculated risks in a timely fashion
• Discourage the Board from having to have consensus on every issue because that’s just not going to happen………
• Discover other root causes of the foot dragging, perhaps there has been little if any Board meeting management presentations.
• Assist the Board in understanding  the potential damage consistent indecision is causing

Is Your
Organization Going Through a Dilution of Powers?

In an organization governed by a nonprofit Board of Directors much of the ‘power’ can de diluted as it spreads throughout powerful committees, past Presidents who do not want to ‘let go’ and/or long term staff who may have made very influential contacts over the years. While the Board sets policy often times the policy becomes diluted as the various groups above, determine and exercise their interpretation. Sometimes these groups actually work in opposed direction of the Board’s policy.

This dilution of power happens much more that you might think as sometimes it’s interpreted as poor communication, a weak CEO or both. The potential damage in the short term can cause major issues.  Over the mid to longer term it affects trust,
staff/board relations, member confidence and this list goes on and on……………….Board members become displeased, some leave, other become apathetic. Power struggles intensive. There is little if any change the organizations strategic goals are met, chaos reigns!

Perhaps some of you think this may be a bit dramatic, others agree and some of you may be going through this right now.

So what do you do when this is happening? It is somewhat like trying to close the barn door after the animals have begun to stream out. (In this case let replace the analogy of animals with the terms members, funders, and
valued staff members.)

In short, you must close this barn door quickly and then ensure it doesn’t open again. In real terms enhanced communication between the Board, CEO and other stakeholders needs to occur. Committee terms of reference must be evaluated to determine if they are appropriate. The need for transparency, broad based democracy and very clear lines of authority developed (and monitored for effectiveness)

So who makes this happen? It starts with the Board and the CEO. They must act as a team however strong questions must be asked to determine how the situation became so critical. Was there no appropriate CEO evaluation in place? Would the CEO be more comfortable in another sector? There could be a dozen different reasons, can’t fix this in a short blog, but it can and has been  overcome many times.

Terry J. Clark CAE

This dilution of power happens much more that you might
think as sometimes it’s interpreted as poor communication, a weak CEO or both.
The potential damage in the short term can cause chaos.  Over the mid to longer term it affects trust,
staff/board relations, member confidence and this list goes on and on……………….

Board members become displeased, some leave, other become
apathetic. Power struggles intensive. There is little if any change the
organizations strategic goals are met, chaos reigns!

Perhaps some of you
think this may be a bit dramatic, others agree and some of you may be going
through this right now.

So what do you do when this is happening? It is somewhat
like trying to close the barn door after the animals have begun to stream out. (In
this case let replace the analogy of animals with the terms members, funders, and
valued staff members.)

In short, you must close this barn door quickly and then
ensure it doesn’t open again. In real terms enhanced communication between the
Board, CEO and other stakeholders needs to occur. Committee terms of reference
must be evaluated to determine if they are appropriate. The need for transparency,
broad based democracy and very clear lines of authority developed (and
monitored for effectiveness)

So who makes this happen? It starts with the Board and the
CEO. They must act as a team however strong questions must be asked to
determine how the situation became so critical. Was there no appropriate CEO
evaluation in place? Would the CEO be more comfortable in another sector?

Can’t fix this in a short blog, but it can and has been
correctly overcome many times.

Others of you may still be keeping a paper copy and trusting that the copies you give others don’t go into a drawer or into that round permanent file. Adding to that, what about the Directors and other members who did get ‘the’ email that the minutes were attached to. I am really amazed with the amount of organizations living in the past using and passing paper. Congratulations to those who have even gone to a paperless office.

With so many free toools there is really NO reason that minutes and other important documents cannot be stored on line where all concerned (and authorized) can access them. Experiment with http://dropbox.com. Its really simple, user friendly and free.

If you want some references to more sofisticated systems let me know. They cost between 0 and $5,000 per month so you can’t afford to make a mistake.

Congratulations

Congratulations

Why
the Traditional Association Model is Stronger Than Ever

A lot of talk has been
pouring over the internet recently regarding whether the traditional association
model works in today’s crazy fast and ever changing environment.  The answer is
it is more powerful than ever.   Let me share why.

I like to compare the
traditional association model to that of the traditional car model.  Cars of
today have the same four components they did in the 1960′s with an engine, body,
frame and four wheels.  The car has always been the best and most efficient mode
of transportation for the average person.  Yet the cars of today outperform cars
of the 1960′s because of technology advancements and
re-engineering.

Associations are exactly the same.  The traditional model
of today encompasses the same core elements as the 1960′s in that associations
provide groups of people with a common passion and purpose a chance to:

1. Organize themselves
2. Coordinate their efforts
3. Leverage the costs over many people
4. Do things as a group they could not do individually effectively
5. Build trust to take advantage of business opportunities

There is
no other model that allows a group of people with common passion and purpose to
pull off such great accomplishments than the association model.  For all of you
who believe social media can assimilate people with a common purpose, your
fooling yourself because someone has got to execute and do the work.  Social
media allows people to talk, write and shout out a lot, but at some point,
someone has to leave their computer and do the work.  This is where the
associations rules the day.

With technology advancements such as social
media, gotomypc, go to meeting, skype and mobile the association model has made
the association model stronger and more powerful because:

1. We have now given the smallest member in the most remote location an
   opportunity to be involved in the conversation
2. We have empowered our members to connect 24/7
3. We have engaged our members to have a louder voice because the voice has
   expanded
4. We have become more important as a trusted filter to the incredible amount
   of wrong information on the internet

The reason people view the
association model as dead is because many CEO’s and execs have viewed the
technology advancements as a threat to their control and association model
instead of the path to re-engineering that can propel their association to
expand their reach to rule their universe.

I know this because our
organization still runs a traditional model with a baby boomer board of
directors, baby boomer members and committee structures.  However, over the last
six years, our association has aggressively made technology advancements and
re-engineering a habit and the member satisfaction, member loyalty, engage of
the younger generation and financial strength of our organization has never been
higher.

Here’s the deal:

• People WANT to accomplish something bigger than themselves with groups
  common to them.
• People WANT to be a part of something exciting.
• People WANT to believe in an organization who can empower them to make it
  happen.

If any association implements technology advancements and the
right re-engineering around the five core association elements mentioned above,
I believe they can rule their universe and engage the loyalty of their
members.

As the commercial says… “Life come at your fast.  Stop talking
and start doing.”

Alligators in the Boardroom and Urban Legends about Nonprofits
BOARD CAFE • BY JAN MASAOKA • JUNE 14, 2009 •
An influential but under-the-radar form of popular culture is the urban legend. Like the mythic alligators in the New York sewers or the man who woke up in an ice-filled bathtub without a kidney, nonprofits are the victims of urban myths and legends. Common assumptions — just by being passed along through so many people — gain a measure of credibility just by their frequent telling and longevity. This Board Cafe article may be useful for your fellow board members, your neighbours, and others.
Urban Myth #1: Nonprofits can’t make a profit. Truth: In fact, the Internal Revenue Service (IRS) guidelines do not say that nonprofits can’t have profits, but they do clearly state that any profits can’t be simply distributed to board members (as corporate profits are to shareholders). The IRS requires surpluses (“profits”) to be reinvested in the organization’s work. Such cash reserves — built through surpluses — are needed by nonprofits to even out their cash flows, to provide reserves for emergencies, and to pay for equipment, research, staff development, building renovations, and other necessary investments.
Urban Myth #2: Nonprofits can’t charge for their services. Truth: In fact, many nonprofits exist solely or mostly on fees charged, such as nonprofit preschools that charge tuition or community choirs that sell tickets to their concerts.
Urban Myth #3: Nonprofits are poorly managed compared to businesses. Truth: Compared to which business? Compared to Lehman Brothers, Enron, Merrill Lynch, General Motors, WorldCom? In fact, nonprofits often achieve growth rates well above for-profit companies of comparable size, and they do so while undercapitalized and highly regulated and while maintaining the highest of ethical standards. But comparisons between nonprofits and for-profits often aren’t very useful; they have different bottom lines, different measures of effectiveness, different resources, and different financial flows.
Urban Myth #4: Nonprofits can’t lobby. Truth: Nonprofits cannot engage in any electoral activity  —  they can’t support or oppose candidates. However, they can support or oppose ballot measures (such as for public school bonds or against new immigration laws). In addition, nonprofits can encourage legislators to support or oppose various pieces of legislation —  as long as such lobbying activities are an “insubstantial” part of their activities. In fact, legislator education and lobbying may be centrally important for long-term impact. (For more information, see the web site of Center for Lobbying in the Public Interest: http://www.clpi.org/)
Urban Myth #5: A nonprofit budget has to be balanced. Truth: Instead, in some years a nonprofit will want to budget for surpluses, in order to create a cash reserve or to save up for new equipment. In other years the same nonprofit might plan for a deficit, for example, because the rainy day has arrived, to do a one-time program with windfall money, or to invest in a new fundraising strategy. Over time, the financial goal of a for-profit is to maximize profits; in contrast, the financial goal of a nonprofit is to sustain sufficient working capital for program continuance and strategic choices.
Urban Myth #6: I don’t benefit from nonprofits. Nonprofits help other people. Truth: each and every one of us benefits from nonprofits every day. We may have a daughter in Brownies or an aging father in a nonprofit nursing home. We may watch public television, take in a play, or take a walk in a restored natural habitat. We drive safer cars because nonprofits have developed and advocated for consumer safety legislation. We benefit from medical research at nonprofit research institutes, and from the cleaner air and water that have resulted from nonprofit advocacy. Nonprofits aren’t about us helping them; nonprofits are the vehicle through which communities organize to help ourselves.
Urban Myth #7: Nonprofits don’t contribute to the economy. Surprisingly, nonprofits generate 8 percent of the gross domestic product (GDP) in the United States and employ one in every fourteen American workers. Nonprofits mobilize the efforts of an army: 61.2 million adults volunteering 12.9 billion hours each year toward community and public benefit - the equivalent of 7.6 million full-time staff. (Reference: Nonprofit Almanac 2008)

So, what do you do?

A bully tends to back off when someone (especially the Board Chair) speaks up and says for example: If you have concerns about a process or decision made by the Board, we will hear them, but we need you to express them in a manner that shows respect for the Board…….

The Board Chair may need someone to ‘role play’ this with, in advance….. We all know who the bully’s are and what gets them going. How and when we respond to them makes the big difference.
No, it doesn’t work all of the time but it does work most of the time. If you need a plan B give me a quick call, we can probably solve it in a quick conversation. Life is too short to put up with Boardroom bully.

If you don’t have a Boardroom bully, congratulations. If you stick around long enough, you will have a Boardroom bully show up!